Why the Miami Beach Democratic Club Opposes the 1691 Michigan Avenue Referendum
Miami Beach voters will be asked to decide whether to approve major changes to the ground lease for City-owned property at 1691 Michigan Avenue. After reviewing the proposed agreement, the Miami Beach Democratic Club voted to oppose the referendum and recommend a NO vote.
The issue is not whetheto remove the existing tenant or cancel the current leaseed. A NO vote does neither. The question is whether Miami Beach should approve substantial new development rights and potentially extend private leasehold control of this public property for an additional 40 years.
The Existing Lease Can Already Run Through 2092
The City of Miami Beach owns 1691 Michigan Avenue, but the property is subject to a long-term ground lease currently held by RK Rivani LLC. Under the existing agreement, the lease and its current renewal options can already continue until approximately 2092. The referendum would add two more 20-year extension options, potentially extending the ground lease through approximately 2132.
That distinction matters. Miami Beach is not facing an expiring lease that must be addressed today. Voters are being asked in 2026 to approve terms governing a City-owned property for a period that could extend more than a century into the future.
Significant New Development Rights
The proposed amendment would authorize approximately 47,000 square feet of additional development above the existing parking garage, including commercial space from which the leaseholder could generate revenue.
It would also substantially change the property's parking requirements.
The existing lease requires a minimum of 700 parking spaces. Under the proposed amendment, that minimum would fall to 425 spaces.
No Competitive Bidding
The City Commission also waived the City's formal competitive-bidding requirements in connection with this amendment.
That means the City did not first conduct a competitive process to determine whether alternative proposals for the long-term use of this City-owned property might produce different financial terms or public benefits.
For an agreement that could affect a valuable public asset through approximately 2132, the Club believes transparency, fair value and protection of the public interest deserve particular consideration.
What Does the City Receive?
There are benefits to the proposed agreement, and they should be acknowledged.
The amendment includes an increase in percentage rent from 2.5% to 3% following completion of the expansion, additional base-rent provisions, $1.5 million in negotiated public benefits, and significant private investment in the property.
For the two proposed additional 20-year option periods, the ballot projects approximately $247.7 million in guaranteed base rent and $184.1 million in estimated percentage rent.
But those additional option periods would not begin until approximately 2092 and could extend through approximately 2132. The question for voters is therefore not whether the City receives anything in return. It is whether those benefits justify granting the additional rights and making such a far-reaching commitment today.
What Happens If Voters Say NO?
This is perhaps the most important point:
A NO vote does not cancel the existing lease.
RK Rivani LLC would remain the ground-lease tenant, and the existing lease and its current renewal options would remain in place. The City would continue to receive the rent required under that agreement.
Rejecting the referendum would instead mean that the new amendment does not take effect. It would also preserve the ability of the City and the leaseholder to negotiate a different agreement in the future if an extension ultimately proves to be in the public interest.
Read Our Resolution
After reviewing the proposed lease amendment, the Miami Beach Democratic Club adopted a formal resolution opposing the 1691 Michigan Avenue Ground Lease Referendum.
The resolution outlines the Club’s concerns about the additional 40-year extension, new development rights, reduced parking requirements, limits on certain future rent adjustments, and the waiver of competitive bidding.
Why We Recommend a NO Vote
The Miami Beach Democratic Club believes decisions involving valuable public property should prioritize public accountability, fair value, transparency, preservation of future options and the long-term interests of Miami Beach residents.
The existing lease can already continue for decades. We do not believe Miami Beach needs to decide in 2026 who should control this public property for an additional 40-year period beginning around 2092.
Future generations of Miami Beach residents will have different transportation needs, development priorities, economic conditions and ideas about the best use of public property. Preserving their ability to make those decisions has value too.
On the 1691 Michigan Avenue ground lease referendum, the Miami Beach Democratic Club recommends voting NO.
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